Canon Inc. is setting aside up to ¥2 trillion (around $12.6 billion) for acquisitions in sectors such as medical devices and semiconductor tools as part of its new five-year strategy.
In a presentation outlining its medium-term plan, Canon announced it will invest ¥3 trillion (approximately $19 billion) to strengthen its existing operations, while earmarking an additional ¥2 trillion ($12.6 billion) for potential mergers and acquisitions, Bloomberg reported. The Tokyo-based company is shifting its capital allocation strategy by lowering its dividend payout target from 50 percent to approximately 40 percent, though it expects shareholder returns to exceed ¥1 trillion during the plan’s duration. Canon also reiterated its flexible approach to share buybacks.
Best known for its cameras and printers, Canon is repositioning itself amid declining camera market demand and increased competition in semiconductor manufacturing equipment.